Last weekend, we heard the inevitable – Warren Buffett announced his decision to step down as the chief of Berkshire Hathway later this year. Buffett’s contribution to the world of investing and business goes beyond the immense amount of wealth creation for Berkshire shareholders over several decades. As this piece in the WSJ shows, several CEOs across the world have benefitted immensely from Buffett’s advice, which in turn helped create value. Here are some such gems of advice featured in this piece:
“Jim Weber, former CEO of Brooks Running
Keep focused on the long term. When a stronger dollar meant Brooks was making less money on shoes in Europe, Weber called Buffett for help.
After listening, Buffett said: “Ignore all that, because you can’t do anything about it,” Weber recalls. “He said, ‘If I were you, I’d focus on your customer.’”
Larry Culp, CEO of GE Aerospace
“He shared two pieces of advice with me that have been critical to our success,” Culp said. “First, and most important, pick the right leaders—not only for their ability, but for their values. And second, set ambitious but not unreasonable expectations.”
David Novak, former Yum Brands CEO
Buffett drafts his annual letter to investors as if they were to his sister, Bertie, who was smart, but not steeped in financial topics. In 2002, Buffett sent Novak a note after reading his letter in Yum’s annual report.
“My sister Bertie would be proud of you,” Buffett wrote.”
We could use this at Marcellus while writing our newsletters.
“Muhtar Kent, former Coca-Cola CEO
Most important of all was his unique way of thinking and doing things,” Muhtar Kent says. “Simple, low key and effective.”
“One of my first visits to Omaha back in 2006 he drove me himself to his club where we had a light lunch and then he drove me by his house and then to the airport. No driver, no security.”
Warren Buffett lives up to his brand, Kent says: “Overdeliver with simplicity and humor.””
The following two pieces are our favourite of the lot:
“Kyle H. David, CEO of KDG
David, who was again in Omaha on Saturday, says his own leadership has been quietly guided by one Buffett-ism: “The absence of stupidity is worth more than the presence of genius.” “It’s a reminder that sustainable success isn’t always about brilliance—it’s about avoiding unforced errors, staying humble, and building systems that prevent us from outsmarting ourselves,” he said.
Brandon Guthrie, director of international development for Berkshire Hathaway-owned Dairy Queen
One of Brandon Guthrie’s favorite Buffett slogans is “size is the enemy of performance.” The other: “In looking for people to hire, look for three qualities: integrity, intelligence and energy.”
“If they don’t have the first, the other two will kill you,” says Guthrie.”
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Note: The above material is neither investment research, nor financial advice. Marcellus does not seek payment for or business from this publication in any shape or form. The information provided is intended for educational purposes only. Marcellus Investment Managers is regulated by the Securities and Exchange Board of India (SEBI) and is also an FME (Non-Retail) with the International Financial Services Centres Authority (IFSCA) as a provider of Portfolio Management Services. Additionally, Marcellus is also registered with US Securities and Exchange Commission (“US SEC”) as an Investment Advisor.
